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Economics Help Resources
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Flexible Labour Markets
Flexible Labour Markets:
This means that the labour markets quickly adjust to a competitive equilibrium. Flexible labour markets involve
- Easy to hire and fire workers
- Labour is occupationally and geographically mobile
- Govt intervention does not distort the market
Characteristics of Flexible Markets:
- Skilled workforce which can adapt to changing requirements
- Flexible hours and working contracts e.g. more temporary employment or working from home.
- Greater flexibility in pay arrangements
Why has there been an increase in labour Market Flexibility?
- Globalisation has opened the UK to more international competition therefore to remain competitive firms have to keep labour costs relatively low
- Technological change has made it easier to have flexible labour markets. For example the internet has increased the provisions of information better and makes it easier to work from home.
- Changing social environment e.g. increased female participation in the labour force, women are more likely to favour part time flexible work.
- Core Periphery model. This states that firms are making more use of a core workforce but also part time temporary workers who are more flexible.
- Privatisation. Private firms have sought to increase profitability by cutting excess workers
- Reduced power of trades unions such as banning closed shops and limitations on the right to picket.
- The New Deal. This includes better information and making it more difficult to stay on benefits
Essays and Revision Notes on Labour Markets
Flexible Labour Markets
Minimum Wages
- Flexible Labour Markets at Tutor 2U